KAPA‘A — After 40 years as a centerpiece of East Kaua‘i shopping and culture, the tenants of the Coconut Plantation Marketplace say they are optimistic about its next chapter with ABC Stores taking over as majority owner of the property.
KAPA‘A — After 40 years as a centerpiece of East Kaua‘i shopping and culture, the tenants of the Coconut Plantation Marketplace say they are optimistic about its next chapter with ABC Stores taking over as majority owner of the property.
“We see this shopping center as an excellent retail location and resort retail environment,” said Neil Y. Ishida, director of public relations for ABC Stores at the main office in Honolulu. “Our plans are now still at its creative stage but certainly the first phase will include the fixing up the property to revitalize it.”
ABC Stores acquired Coconut Marketplace in March. It is the company’s first shopping center, and at 7 acres with 66,000 square feet encompassing several retail outlets and open space, the site is larger than most ABC Stores’ properties.
ABC Stores President Paul Kosasa has confirmed that there are no immediate plans to develop the property, Ishida said. The marketplace is about 20 percent occupied and the plan is to keep it open during any revitalization.
“We do not plan to make too many changes on the immediate horizon,” Ishida said.
The tenant mix will include local and visitor industry types, he said. The plan also may include an ABC Store.
The existing Whalers General Store is owned by a competitor, the Sullivan Family of Companies based in Honolulu. There are two other Whalers stores on Kaua‘i, in Anahola and Koloa.
An immediate goal is to work with each existing tenant to update lease agreements to a win-win situation, Ishida said.
“We strongly believe that the troubled relationship with tenants is now over and our goal is to move forward with a optimistic outlook,” Ishida said.
A gallery manager said it is good to have a landlord that is also a retailer, and with a good track record in Hawai‘i. There were difficulties working with so many management companies, said the manager, who did not want to be named.
Mary Lou Mendes, president of Nakoa Enterprises Inc., said the marketplace has had its share of ups and downs since the grand opening on Aug. 12, 1972. As a one-time manager of Coconut Marketplace, she has been on site for 32 years and now runs five stores, Bodacious Plus Size Apparel, Bodacious Petite thru Plus, Jungle Rain, Golden Nugget and Nakoa Surf.
“I’ve seen it through a lot of different things and I’m pretty optimistic about the future,” Mendes said.
Two hurricanes, the post 9/11 travel decline, and the 2008 recession have all affected the marketplace, she said. It has rebounded with each recovery and Mendes said she expects great changes from a top-of-the-line retailer owner that brings smart marketing.
“It’s a grand opportunity,” Mendes said. “I have been in conversation with them and its still pretty early in the game right now but I’m optimistic.”
“I know this is a great place to be in business and for visitors to shop,” Mendes added. “I don’t think they are going to go wrong with this purchase.”
The tenants find it difficult to go through owner transitions, Mendes said, and filling empty spots with new stores will be an obvious challenge. She said it helps to have a local owner.
“The most important thing is to bring traffic to the center and visitors are a big part of that,” she said. “When there are fewer people getting off the planes, then that is problematic. The local traffic is gravy but the visitors are definitely a significant part of the retail.”
Genora Woodruff, who has worked the Hawai‘ian Music Store kiosk for the past 16 years, is very positive about the sale. She said too many interested stores had been discouraged from leasing in the past, including coffee shops, restaurants and bars, the types of businesses expected to be found at any plaza.
Woodruff said she is looking forward to seeing something done with the tower and the old theater. She recalled the 2010 rent strike when despite the victory some major tenants left. That led to four years of attrition.
“We are finally going to be owned by somebody who understands Hawai‘ian marketing and tourism,” Woodruff said.
The centerpiece of Coconut Marketplace is its three-day morning farmers market and the Cultural Center, all of which are run by Darryl and Leilani Lowe.
The live music, cultural entertainment, hula lessons and lei-making classes are popular and have proven to be significant draws for the marketplace.
Darryl Lowe agreed that the new ABC Store owners present an air of optimism. He hopes the changes to enhance what he is already doing by improving the site and attracting more people.
“They like the idea of having a cultural center on this property,” Darryl Lowe said.
Lowe, who grew up across the highway from the time before the marketplace existed, said it was once the “happening place on the island.”
“The new management remembers this place even before it was built,” he said. “I would like to see what happens next.”
